Commodity prices jumpy, but going up

NEW YORK – Concerns about slowing growth in China sparked a selloff in commodities futures this past week, but some Wall Street watchers remain bullish about companies that produce what’s called “stuff” – goods like oil, metals and timber.

Many analysts believe oil prices are overextended, and speculation is likely to keep other raw materials volatile for the near future, as well; in a vivid illustration of this, copper hit a 15-year high on Wednesday only to tumble to a five-week low on Thursday. But with global demand generally on the rise, dividend-paying equities linked to commodities still hold a great deal of appeal for professional investors.

“If you look at the companies that produce industrial commodities, there is some fundamental support underneath them that could lead to continued increases in stock prices,” said Kenneth McCarthy, chief economist with vFinance Investments, Inc. “So even though the underlying commodities may jump around a lot, the basic trend is toward higher prices, in both commodities and the companies that produce them.”